The New Bottom Line

Managing The Journey

Making changes in your company is an important step. But to manage the journey over the long-term, four systems should be in place:

  • Accountability system. Everyone needs to know whose responsibility it is to do what. The primary reason change often doesn't last is people don't know what's expected of them.
  • Information system. Too often in business, only financial data is gathered--and then it is distributed only to management. Other key indicators that relate to performance areas also need to be tracked. Information on performance has to be made available to those people who can best use it--those doing the work.
  • Feedback system. It's difficult for employees to improve their performance if they don't have a clue how they're doing.
  • Recognition system. For change to last, good performance must be acknowledged. If current performance is below expectations, you must reprimand or provide training as needed.

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This article was originally published in the February 1998 print edition of Entrepreneur with the headline: The New Bottom Line.

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